Tether is referred to as a stable coin because it generally maintains a worth of $1, or close to it. The idea is that you can move from once cryptocurrency to Tether without converting your investment to cash. Many people utilize Tether when they believe Bitcoin (or other crypto) is going to drop in value; “Tethering up” allows a person to hold their worth intact while Bitcoin drops in price, generally with the intentions of re-entering Bitcoin when the price is on an uptick. Tether maintains the stability by “printing” more Tethers.
If this all sounds familiar, may I introduce you to the United State central bank? Just what crypto needs, centralization!
Anyways, before they were known as Tether, they were known as “Realcoin” (we are real ya’ know!!) and during the rebrand their CEO was quoted as saying, “We’re not an altcoin, we’re not our own blockchain. We’re a service, a token that represents dollars. Our specialty at Tether is currencies on the blockchain…”
It’s fitting that they removed the “real” in their name, since their coin isn’t really backed by anything of significance – give their Wikipedia a peruse for more.